Perry v. Commissioner
United States Board of Tax Appeals
1. Section 201(c) of the Revenue Act of 1918, providing that distributions in liquidation of a corporation shall be treated as payments in exchange for stock, has no application to a dividend declared from profits where at the time of the declaration the corporation is not in dissolution and there is no retirement of the capital stock in whole or in part. 2. Dividends declared from earnings with no provision for retirement of any part of the capital stock, do not fall within…
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1. Section 201(c) of the Revenue Act of 1918, providing that distributions in liquidation of a corporation shall be treated as payments in exchange for stock, has no application to a dividend declared from profits where at the time of the declaration the corporation is not in dissolution and there is no retirement of the capital stock in whole or in part. 2. Dividends declared from earnings with no provision for retirement of any part of the capital stock, do not fall within the term "distribution in liquidation" although at the time of declaration there may have existed an intent to dissolve…
1Opinion of the Court
*798OPINION'.
Phillips:
The question involved in the present proceeding is whether a certain dividend of the Lone Star Motor Co., declared on June 30, 1919, from the surplus and profits of the corporation on that date, is subject to both the normal and surtax, or is subject only to surtax.
The pertinent provisions of the Revenue Act of 1918 are as follows:
Sec. 201. (a) That the term “ dividend ” when used in this title * * * means (1) any distribution made by a corporation, other than a personal service corporation, to its shareholders or members, whether in cash or in other property or in stock of…
2Cited by6 opinions
- Guild v. CommissionerUnited States Board of Tax Appeals · 1930
- Holmby Corp. v. CommissionerUnited States Board of Tax Appeals · 1933
- Kennedy v. CommissionerUnited States Board of Tax Appeals · 1929
- Perry v. CommissionerUnited States Board of Tax Appeals · 1927
- Rollestone Corp. v. CommissionerUnited States Board of Tax Appeals · 1938
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